Can you ask for a collection agency to send the debt back to the original party?

Question

I owe the bank $1200. it has now gone into collection and the collection agency has tacked on $1000. can i ask the bank to just pay them in full that way i do not have to pay another $1000

Answer 1

It depends.

If the bank has sold this debt to the collection agency, then they no longer have anything to do with the account and cannot legally accept payment. However, if the collection agency assigned the debt to a collection agency, they can pull it back (if they choose) and there is really nothing the collection agency can do about it.

Regardless, I suggest you look into the $1000 of "interest" they charged you as that is very likely an illegal act on their part.  

Answer 2

The very first thing you need to do is dispute this debt and demand that the collection agency validate it.  Specifically ask them to account for what the additional $1000 is for.  Then look at your contract to see if it mentions you are responsible for these fees.

Many collection agencies tack on illegal fees, or fees that are way out of line.  

It is very unlikely they are going to return this to the bank.  Remember, the bank as been trying to collect from you for months and you refused to pay.  Why should they work with you now?

Also note that there is no real advantage to working with the original creditor here.....and you may actually be able to negotiate a settlement with the collection agency to lower the debt.  

But don't do anything until they have validated this thing!

Answer 3

not likely - the collection agency doesn;t make any money doing that

Answer 4

No, and you agreed to this collection charge when you took out the loan.

Shouldn't have ignored those phone calls.

Answer 5

You can ask for a settlement amount.  But once it leaves the office to a collection agency, they wipe their hands with it and will not accept it back.  Your best bet is to ask the collection agency for a settlement amount IF you pay it in full right now and then.  More then likely they will just carge you a small fee and not the $1000

Answer 6

You can ask them to do whatever you want, but that doesn't mean they'll do it. Chances are they won't. They likely purchased the debt from the bank at less than the balance owed. The bank didn't want the debt to begin with.

Answer 7

You can ask, but it likely won't happen unless there's something we don't know about the circumstances of the debt.

For example, suppose the collection agency bought the debt from the bank. In this case, they can't send it back to the bank. So that won't work. However, they likely bought it for around face value (depending on how old it is, older means more interest, but less likely to collect, so discounted). So you may be able to negotiate a settlement. (Make sure you get the settlement offer in writing before you send money!)

Or suppose the collection agency is working for a percentage of the amount they collect. In that case, they have done work and won't want to let go. On the other hand, if they can get something or nothing, they'll likely take the something.

There are a lot of ways you can gain negotiating leverage. For example, if they bought the debt, you can claim (don't lie, but you can insinuate if you're clever) that you already disputed the debt with the bank. You can ask if they have your file from the bank, including any dispute letters you sent them. (You can ask even if there aren't any, it's not lying.)

If they bought the debt, they may not have any other information, and so may fear that they will lose any chance of getting money. Tell them you already offered the bank the amount you believe you owe according to your dispute, say, $1,100. Maybe they'll take it.

We don't know your situation well enough, but try to feel out what situation you're in, what the collection agency will respond to, and get a settlement offer in writing from them. They want some money rather than no money, and they want it fast. If they think they can get it only one way, they will probably jump on that way.

Answer 8

hahaha no the bank is long done with you.

the 1000 is from added intrest/late charges ect